Jumia (JMIA) has faced significant headwinds since listing, including allegations of fraud and a steep decline in share price. While e-commerce in Africa presents Jumia with a large opportunity, it is a difficult business and unless Jumia can fundamentally change the economics of their business, I believe their losses will continue and they will remain an unattractive investment.
Profitability
Jumia has a serious profitability problem, which makes them a questionable investment even if they become the dominant e-commerce company in Africa. Given Jumia’s relatively small size, a lack of profitability would not be